In a report published Wednesday, Deutsche Bank analyst David Begleiter reiterated a Buy rating on LyondellBasell Industries NV LYB, and raised the price target from $92.00 to $108.00.
In the report, Deutsche Bank noted, “Lyondell had a mixed Q1 release. While EPS missed by $0.09, or 5%, the miss was due to transitory factors (cold weather related outages, weather-driven higher raw material costs, ethylene purchases/inventory build ahead of the La Porte expansion). Cumulatively, these items impacted Q1 by ~$0.35 (partially offset by price increases). Heading into Q2 these headwinds have dissipated. Coupled with solid demand trends, Q2 should be a strong quarter. While Lyondell once again downplayed the potential of an MLP for its US ethylene assets, with >1/2 of earnings levered to low cost NGLs, $9B+ of buybacks in '14-'15E, $10+ in EPS in '16E and valuation a fair 12.5x '14E EPS. Maintain Buy.”
LyondellBasell Industries NV closed on Tuesday at $90.97.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in